It's never too early to handle year-end
There’s one positive to closing the company’s books: Finance won’t have to worry about the task for another year. But starting the process early — as in, right now …
Will shave weeks off the year-end cycle.
Sure, you can just bump up the year-end process by a week or two. The earlier you start the financial reporting and closing, the earlier it’ll be over with, right? But here’s some food for thought: The average company takes nearly six days to close its month-end books, with another five spent on reporting.
Then the real time crunch at year-end happens. Once Finance gathers info from other departments and compiles it, a company only has a few weeks (if it’s lucky) to correct any issues.
What’s the major issue for closing? Of course, it’s tempting to blurt out the S-word: spreadsheets. Excel’s a reliable reporting tool, but it’s hard for Finance to control what goes into a report, especially for employees who aren’t used to dealing with numbers on a day-to-day basis.
But business performance management (BPM) systems aren’t a cure-all for lengthy closes, either. Automated programs can help manage spreadsheet overload and speed up the reporting cycle, but they aren’t helpful if the data being compiled isn’t reliable.
Instead of waiting until year-end to pick up on mistakes, switching to a monthly system will give Finance and other departments a chance to hone their closing skills. Keep data accurate and on track by ensuring staffers, at minimum:
- Perform a monthly soft close and a quarterly hard close to keep an eye on how numbers are shaping up
- Reconcile transactions as soon as possible (it makes finding and fixing errors run smoother), and
- Report to every department how their data quality stacks up.
Not only does running a mini-close every month keep incoming data as accurate as possible, but it’ll ease crunch-time on finance and accounting departments when it’s time for the real deal.
Free Training & Resources
Further Reading
Managing cash flow is one of the most pressing challenges finance teams contend with. T&E programs are a large and variable part of com...
Businesses are looking for competent number-crunchers. Some are even desperate to find talent. But the next wave of finance professionals i...
Year-end close is when many finance teams are vulnerable to burnout from a seemingly endless, high-priority to-do list of generating annual...
Public companies expect third-party audits to be thorough and accurate. Many aren’t getting the results they expect. The Public Co...
Brace yourself: About a third of accountants are making multiple errors every week. Fifty-nine percent are goofing up on a monthly basis, i...
If you’ve used Excel to create a database table with fixed formulas, and that table will be used by multiple people, there’s a ...